UK car production experienced a significant decline in October, with overall output falling by more than 15% compared to the same month last year. The drop was largely attributed to weak demand for exports, according to the Society of Motor Manufacturers and Traders (SMMT).
Production of electric and hybrid vehicles also saw a sharp decline, falling by a third from the previous year. This was primarily due to sluggish demand in Europe and the ongoing retooling of factories to accommodate new models. The SMMT’s chief executive, Mike Hawes, described the situation as “deeply concerning,” noting that the automotive industry is under “intense pressure” as it invests heavily in new plants and zero-emission products.
The production downturn follows recent announcements of job cuts and plant closures in the UK automotive sector. Stellantis, the maker of Vauxhall, revealed plans to close its van manufacturing facility in Luton, citing the challenges posed by new rules designed to accelerate the shift to electric vehicles (EVs). Similarly, Ford announced it would cut 800 jobs across the UK over the next three years, citing difficult trading conditions and declining demand for EVs.
Hawes expressed concern that manufacturers are facing the “toughest targets and most accelerated timeline” for transitioning to zero-emission vehicles, with little support in terms of incentives to drive consumer demand. Although electric vehicle sales in the UK have been rising, EV production in October was still lower than expected. In October, electric cars made up one in every five vehicles registered, but experts warn that much of this growth is fueled by unsustainable discounting practices.
The UK government has set ambitious targets under its zero emissions vehicle (ZEV) mandate, which requires car manufacturers to sell a certain percentage of zero-emission vehicles ahead of the 2030 ban on new petrol and diesel car sales. In 2024, EVs must account for 22% of car sales and 10% of van sales. Companies that fail to meet these targets face hefty fines, although they can purchase credits from companies that exceed the mandate.
The closure of Stellantis’ Luton factory, which will put 1,100 jobs at risk, has sparked concerns within the industry. Mark Noble, the former UK manufacturing lead for Stellantis, attributed the plant’s closure to factors including Brexit-related uncertainties and the pressures of meeting the ZEV mandate. He also highlighted the need for more charging infrastructure to support the mass adoption of electric vehicles.
Despite these challenges, Vicky Read, CEO of Charge UK, an electric vehicle charging body, noted that the installation of charging points is increasing, with a new charger being installed every 25 minutes. However, experts warn that without adequate support, traditional car manufacturers may struggle to keep up with new competitors in the rapidly evolving EV market.
